Agenda Packets - 2005/08/22 - Laserfiche WebLink

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Item No: 8K Meeting Date: 08/22/05 Type of Business: CB City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kurt Ulrich, City Administrator Item Title/Subject: Resolution 6605 Adopting an Amended Contract with Canyon Grille for the Lease of Space at the Mounds View Community Center Background With the proposed remodeling project at City Hall it is recommended that the City Hall staff (with the exception of the Police Department that will relocate to the Ramsey County Sheriff’s facility in Arden Hills) be relocated to the Mounds View Community Center, utilizing space currently occupied by the YMCA and Canyon Grille. The YMCA contracts with the City to provide recreational services. The Canyon Grille leases space from the City comprising of the event center, former community school classrooms, offices and common area. The total amount of space required for City operations at the Community Center is about 4,700 square feet, including common space. Of the total, about 72% or 3,400 square feet, is space currently leased to Canyon Grille. The City would need to lease the space back from Canyon Grille at a rate to be determined. Discussion Canyon Grille has requested that they pay no rent for the approximately seven months that the City will be occupying the space from September 1, 2005 through April 1, 2006. For the first six months of their lease, the Canyon Grille paid $3,000 per month in rent. Beginning July 1, 2005, the lease went up to $5,000 per month. Canyon Grille is to pay the $5,000 for July and August. The City received quotes from two Mounds View shopping centers and an educational office building and rents were quoted at $14.50 a square foot, not including utilities. At that rate the City would need to pay $5,679 in rent, plus utilities for the same amount of square footage being used at the Community Center. A high-speed computer connection (T1 line) would also need to be added in any of those locations. If the total square footage of 4,700 square feet is used in the calculation, the city is paying a rate of about $12.00 per square foot for the Community Center. Utilities are already being paid for with the building so there would be no additional charge. A T-1 computer connection is also already installed and paid at the community center so there would be no additional charge for that service. By comparison, the lease rates of other current tenants (e.g., the day care and Chamber of Commerce) range from $8-11 per square foot. The Canyon Grille has been asked to provide financial information for the past six months of community center operation.